Information Bulletin
17 March 2005
Smyril Line release
The Council’s decision regarding possibly making a new investment of up to £3million in Smyril Line was on the basis of forming a joint operation with Fjord Line, Norway.
As an alternative, the Faroese and Icelandic shareholders have decided to fully support the ongoing operations of Smyril Line with an investment of £5.5 million. Shetland Development Trust have decided to make a further investment of £250,000 which was recently advanced to the company as a short term loan. Shetland Development Trust remains a major shareholder in the refinanced company with a share of 20%.
Morgan Goodlad Director of Smyril Line commenting said that ‘it is good news for Shetland that the Faroes and Icelandic shareholders are now to make a substantial investment in Smyril Line safeguarding the future of the company at this time’.
The board of Smyril Line have confirmed that there are no planned changes to the existing published schedules which include regular calls into Shetland throughout the year.
Shetland remains an important part of the company and of future development plans providing further growth opportunities for economic development.
A recent independent study concluded that a £5.9 million was contributed to the Shetland economy last year by the Norrona calling into Shetland, demonstrating the vital importance of this link.
Positive discussions continue directly between the Council and Fjord Line regarding future cooperation in developing closer trading and tourist links between West Norway, Shetland and UK mainland.
Both these developments sustain and create important future opportunities for the Shetland economy.
Ends …….